Peresec Prime Brokers, a South African market-leading financial services provider, has significantly bolstered its investment in SPAR Group, acquiring more than 3 million additional shares in the South African grocery retailer and wholesaler as it navigates mounting trading and balance-sheet pressures.

The investment has lifted Peresec’s clients’ combined interest in SPAR from 8.83% to 10.45%, making the single largest broker on the Johannesburg Stock Exchange (JSE) an increasingly significant shareholder in the grocer.

Peresec’s SPAR stake rises to $54 million

Spar Group Ltd, a wholesaler and distributor of goods and services with a strong presence in South Africa and Guernsey, has seen its share price come under pressure this year, creating a lower entry point for investors with its current market capitalization falling below $500 million.

Peresec’s clients earlier held over 17 million SPAR shares, representing an 8.83% interest in the company. The grocer’s share price has, however, declined this year from R95.5 to R44.43 by 49.7%, reducing the value of that original holding.

Against this backdrop, Peresec has increased its position by over 3 million shares, taking its holding above 20 million shares, equivalent to a 10.45% interest in SPAR. At the current share price, the stake is worth approximately R896.09 million ($53.72 million).

According to a market notification issued by SPAR Group on October 5, 2026, clients of Peresec acquired sufficient ordinary shares to take their aggregate interest above the 10% threshold. The disclosure was made in accordance with South Africa’s Companies Act and JSE Listings Requirements, with the required notice to be filed with the Takeover Regulation Panel.

The increase represents a substantial expansion of Peresec’s exposure to SPAR, with its shareholding rising by 1.62% from the 8.83% position earlier recorded.

SPAR faces rising debt as profit slumps and trading pressures mount

SPAR’s half-year performance underscores the mounting pressure on profitability and its balance sheet as the retailer contends with weaker trading conditions, higher operating costs and elevated debt.

The group’s net debt rose to R7.3 billion ($437.93 million) from R5.4 billion ($323.95 million) at the end of September 2025, while operating profit fell 45% to R740.5 million ($44.42 million). Although revenue increased 1.7% to R50.8 billion ($3.05 billion), the modest growth was accompanied by continued volume pressure, with grocery and liquor wholesale revenue rising 1.1% and retail sales increasing by the same margin against internal selling price inflation of 2.6%.

SPAR said it is focused on addressing operational inefficiencies, improving its distribution network and restoring profitability as it navigates a challenging trading environment. The combination of weaker earnings, rising debt and margin compression, however, leaves the group under continued pressure to translate revenue growth into stronger returns.